Financial performance of banks: differences in measurement methods and diversity of influencing variables

A comparative analytical study of previous studies during the period 2000-2020

Abstract

The aim of the research is to review and evaluate the literature related to the subject of assessing financial performance and related variables, through relying on the comparative analytical approach to a sample of (65) previous studies over 12 countries during the period (2000-2020). The results are summarized several variables with different impacts on the financial performance of the banking sector, and several methods of measuring financial performance represented by (financial ratios, CAMELS model, return and risk indicators, statement of cash flows, horizontal analysis and vertical analysis, balanced performance card), and by clarifying the advantages and disadvantages of each measure compared to other measurements, and despite the comprehensiveness of the research and the diversity of the variables affecting the financial performance of banks, there are other variables such as laws, legislations, reforms, and interest, which come within those variables affecting the financial performance of banks that have not been researched and studied, accordingly it was recommended to study the impact of these variables on financial performance in banks.